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    Asset Owners / Insights

    Active Manager Outperformance 2024

    Published Q1 2024

    About This Report

    Nasdaq eVestment’s annual Active Manager Outperformance report is a retrospective analysis of active equity and fixed income managers’ returns compared to their benchmarks over the past 10 years through 2023. Institutional investors face the challenges of setting policy with regard to active or passive management of assets and of sourcing manager alpha. This report can serve as a base for these exercises. We provide quantitative evidence on the asset classes and strategies in which active management is providing, or detracting, value.

    Benchmark outperformance across active equities was hard to come by in 2023. At a high level, emerging markets and international equity strategies did best with 63.3% and 54.7% of managers beating their benchmarks last year. With U.S. equity market returns in 2023 driven by a handful of growth companies, we saw value equity managers beat their benchmarks more often than growth equity managers.

    The majority of active fixed income strategies outperformed their benchmarks in 2023. More than 50% of aggregate, core plus, and corporate bond managers investing globally and in U.S. markets showed positive excess returns. Fewer high yield and bank loan managers to beat their benchmarks. Across Europe fixed income, we saw the majority of corporate bond, secured loan, ABS, aggregate bond, and government bond strategies beat their benchmarks.

    Complete the form to access the report.

    Nasdaq eVestment’s annual Active Manager Outperformance report is a retrospective analysis of active equity and fixed income managers’ returns compared to their benchmarks over the past 10 years through 2023. Institutional investors face the challenges of setting policy with regard to active or passive management of assets and of sourcing manager alpha. This report can serve as a base for these exercises. We provide quantitative evidence on the asset classes and strategies in which active management is providing, or detracting, value.

    Benchmark outperformance across active equities was hard to come by in 2023. At a high level, emerging markets and international equity strategies did best with 63.3% and 54.7% of managers beating their benchmarks last year. With U.S. equity market returns in 2023 driven by a handful of growth companies, we saw value equity managers beat their benchmarks more often than growth equity managers.

    The majority of active fixed income strategies outperformed their benchmarks in 2023. More than 50% of aggregate, core plus, and corporate bond managers investing globally and in U.S. markets showed positive excess returns. Fewer high yield and bank loan managers to beat their benchmarks. Across Europe fixed income, we saw the majority of corporate bond, secured loan, ABS, aggregate bond, and government bond strategies beat their benchmarks.

    Complete the form to access the report.